VeriFone Systems Inc (PAY) Posts Q1 Services Growth of 11%

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VeriFone Systems Inc (NYSE: PAY ) unveiled its latest quarterly earnings results Thursday, meeting analysts' earnings expectations.

The San Jose-based company posted GAAP net revenues of $437 million and non-GAAP net revenues of $425 million for its fiscal first quarter of 2018. The former figure fell by 3.7% year-over-year from the $454 million it brought in during the same quarter in fiscal 2017.

VeriFone Systems' GAAP net income per diluted share tallied up to six cents per share, while its adjusted earnings amounted to 23 cents per share for the quarter. Analysts were calling for adjusted earnings of 23 cents per share, according to Thomson Reuters .

The company also saw its services grow by 11% year-over-year, making up about 43% of its adjusted net revenues. VeriFone Systems also repurchased $50 million of PAY stock. "In Q1 we made meaningful progress executing our top three strategic priorities that will return Verifone to growth this year and accelerate our transformation from a terminal sales company to a payments and commerce services provider," said Paul Galant, CEO of Verifone.

"Our primary objective is to scale Verifone's next-generation devices, connect more of our 30+ million device footprint to Verifone's cloud-based services, and leverage our leadership position at the point- of-sale with value-added services that help merchants to start, run, and grow their businesses," he added.

For its fiscal second quarter, the company sees its GAAP and non-GAAP net revenues at about $435 million, while its GAAP net income will be in the range of 8 cents to 9 cents per share. The adjusted earnings forecast is calling for 27 cents to 28 cents per share.

PAY stock fell about 3.4% after the bell Thursday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.